It is currently Thu 19 Sep 2019 12:49 GMT
Change font size

Repatriation

How to Send Money Home From the US

Here's where to discuss the practicalities and issues involved in moving back to the UK.

How to Send Money Home From the US

Postby SingleAgain » Sat 20 Sep 2008 03:57 GMT

I'm glad I found this place. I've been looking but found no answer, hoping someone can help.

I need a way to send regular sums of money from the US to UK. I'm currently an expat living in the US, but will be returning to blighty in February. Once there I will continue to need to receive money from my US bank account.

What's the best, and lowest cost method of doing this that you know of? It will be approximately $1200 a month.

Additionally, I have been reading Kay's thread about banks, but I don't have a UK bank account any more. What are the names of the off shore banks that work in sterling? And how do you go about setting up a UK bank account when you first get there, when you don't yet have proof of address?
Posted by:
SingleAgain
New Member
 
Posts: 2
Joined: Sat 20 Sep 2008 03:38 GMT

Postby gozomark » Sat 20 Sep 2008 19:29 GMT

this should be on the "repatriation" board, not the "becoming an expat" - this maybe why you've had no replies so far

What are the names of the off shore banks that work in sterling - practically all of them - just look for the ones in the Channel islands and Isle of Man

And how do you go about setting up a UK bank account when you first get there, when you don't yet have proof of address? - it depends on the bank - best thing is to look at the T&C of opening a bank account on a particular bank's website
Last edited by gozomark on Sun 21 Sep 2008 05:43 GMT, edited 1 time in total.
Posted by:
gozomark
Site Admin
 
Posts: 14215
Joined: Sun 20 Aug 2006 18:35 GMT
Location: Republic of Gozo

Postby Kay » Sun 21 Sep 2008 05:12 GMT

Thanks, Mark. I'll shift it now.
Not Delia - Foodie blog with lots of reviews and recipes.
Posted by:
User avatar
Kay
Site Admin
 
Posts: 15338
Joined: Wed 22 Jan 2003 13:06 GMT
Location: Kent for a couple of years

Postby gozomark » Sun 21 Sep 2008 06:13 GMT

something to think about - are you bringing back income or capital ? - if its income you maybe be liable to tax in the UK. However, you maybe able to crystallise your income by closing your bank account in the US, and switching it into a new US bank account with the same bank.
Posted by:
gozomark
Site Admin
 
Posts: 14215
Joined: Sun 20 Aug 2006 18:35 GMT
Location: Republic of Gozo

Postby SingleAgain » Tue 23 Sep 2008 02:38 GMT

Its actually child support that will be paid on a monthly basis, which (as far as I can tell from HM Customs and Excise site) doesn't appear to be due tax. Does that seem correct?

And thanks for the move, I wasn't sure where to put it.
Posted by:
SingleAgain
New Member
 
Posts: 2
Joined: Sat 20 Sep 2008 03:38 GMT

Postby jp410cpd » Tue 23 Jun 2009 18:54 GMT

question to gozomark

However, you maybe able to crystallise your income by closing your bank account in the US, and switching it into a new US bank account with the same bank


Could you explain please what you mean by 'crystallize'. Surely the income will be subject to UK Tax if you are resident in UK and receiving income, no matter which bank account it is in, US, UK or Offshore.
Thanks for a response, for I too shall be in same position as OP. Thanks
Posted by:
jp410cpd
New Member
 
Posts: 4
Joined: Wed 17 Jun 2009 19:48 GMT
Location: US - North Carolina

Postby gozomark » Tue 23 Jun 2009 19:03 GMT

You maybe able to turn income into capital by closing the account. It is a procedure accepted by the UK tax authorities for people coming to reside in the UK, but has to be undertaken prior to taking residency - whether it applies to your circumstances, I don't know, but its a legal tax planning action. It doesn't apply to UK residents, but the OP was't UK resident at the time I'm currently an expat living in the US, so your Surely the income will be subject to UK Tax if you are resident in UK and receiving income is true, but not relevant.
Posted by:
gozomark
Site Admin
 
Posts: 14215
Joined: Sun 20 Aug 2006 18:35 GMT
Location: Republic of Gozo

Postby jp410cpd » Tue 23 Jun 2009 23:47 GMT

Thanks for quick response gozomark.
Hmmm, sounds interesting and worth me knowing more. I am expat in US, have modest US savings in IRA, Roth and non-retirement investments here in US, also cash in US domestic bank & credit union. I already have Channel Islands / IOM accounts for some UK savings. If I were to continue to live in US or even move back to UK the IRA will be Income and subject to income tax when I pass 59.5 yrs and start to draw it out as retirement income.
But if I get your drift, before I repat to UK I could move the IRA capital to a US$ account in my IOM bank and it would not be subject to income tax as I take withdrawals ? I'm puzzled, 'cos tax would be deducted when I move the capital from it's current custodian. I have not heard that I could hold my IRA offshore.
Or is it you are referring to income (dividends, interest) from stocks & bonds & cash deposited into an offshore account ?
This is very relevant to me for I am preparing for repat to UK next year and so I am interested in understanding this that I had not heard off before. I look forward to hearing more.
Posted by:
jp410cpd
New Member
 
Posts: 4
Joined: Wed 17 Jun 2009 19:48 GMT
Location: US - North Carolina

Postby gozomark » Wed 24 Jun 2009 04:01 GMT

I have no idea on US tax law (or even what an IRA or Roth are) - my comments are merely about how the UK tax authorities look at things.

An example - You have an account outside the UK, with 100,000 in it - this is 50,000 of capital, and 50,000 of accumulated interest income. If you move to the UK, you could be liable to tax on the 50,000 interest income. By opening a new account, and transferring the 100,000 in to it, it is now all capital according to UK tax.

You really need to speak to an expert in both US and UK tax law
Posted by:
gozomark
Site Admin
 
Posts: 14215
Joined: Sun 20 Aug 2006 18:35 GMT
Location: Republic of Gozo

Postby jp410cpd » Wed 24 Jun 2009 16:29 GMT

Ah, now I see your point and yes, I agree. I have read elsewhere of the principle of the account transfer being able to turn capital + interest into just capital.
Mostly this will not apply to USA residents, for US Revenue apply Tax on an annual arising basis anyway, so for most situations the 'interest' in say a USA bank account has already been subject to tax in the year it was earned.
I have heard that there are offshore financial instruments that can compound interest without tax due annually and crystalizing capital+interest into just capital would be useful in that case I assume.

p.s. to gozomarks final suggestion, if there are any Tax Experts in US & UK Tax reading this then email me please if you can do more than tell me the time after you have borrowed my watch. Thanks.
Posted by:
jp410cpd
New Member
 
Posts: 4
Joined: Wed 17 Jun 2009 19:48 GMT
Location: US - North Carolina

Postby liveirisjul » Wed 8 Jul 2009 10:37 GMT

It could be liable to tax on the 50,000 interest income? just by opening a new account, and transferring the 100,000 in to it? How about in US?
Posted by:
liveirisjul
New Member
 
Posts: 1
Joined: Wed 8 Jul 2009 10:32 GMT


Return to Repatriation



cron